Chemed (CHE) came out with quarterly earnings of $5.20 per share, missing the Zacks Consensus Estimate of $5.47 per share. This compares to earnings of $4.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.94%. A quarter ago, it was expected that this operator of the Roto-Rooter plumbing service and Vitas Healthcare hospices would post earnings of $6.25 per share when it actually produced earnings of $6.60, delivering a sur ...

CONTACT: Michael D. Witzeman (513) 762-6714 Chemed Reports First-Quarter 2024 Results CINCINNATI, April 24, 2024—Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation's largest providers of end-of-life care, and Roto-Rooter, the nation's largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its first quarter ended March 31, 2024, versus the comparable prior-year period. Changes to Non-GAAP Me ...

Chemed’s (CHE) wholly owned subsidiary, VITAS Healthcare Corporation, recently entered into an agreement to acquire all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. (Covenant). The aggregate purchase price of the transaction is fixed at $85 million.The transaction is structured as an asset purchase and the parties will seek to close the same in second-quarter 2024, subject to certain regulatory and other approvals.More on the NewsVITAS stands to gain s ...

CINCINNATI--(BUSINESS WIRE)--VITAS Healthcare Corporation, a wholly-owned subsidiary of Chemed Corporation (“Chemed”) (NYSE: CHE), announced it entered into an agreement on March 12, 2024 to acquire all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. d/b/a/ Covenant Care (“Covenant”) for an aggregate purchase price of $85 million. Covenant’s hospice operations span the panhandle of Florida and Alabama, specifically including the Tallahassee, Marianna, For ...

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (NYSE:CHE) today announced that it will deliver a virtual presentation at the Oppenheimer 34th Annual Healthcare Conference on Tuesday, March 12, 2024, at approximately 12:00 p.m. (ET). The virtual presentation will be webcast live and can be accessed, along with the presentation materials, through the Chemed website at www.chemed.com (Investor Relations). The webcast replay will be available within 24 hours of the live presentation and will be accessible for ...

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Chemed Corporation (CHE) reported adjusted earnings per share (EPS) of $6.60 in the fourth quarter of 2023, up 35% year over year. The figure also surpassed the Zacks Consensus Estimate by 5.6%.The company’s GAAP EPS was $5.90, up 42.9% from last year’s reported figure. For the full year, the adjusted EPS was $20.30, reflecting an 8.1% increase from the year-ago period.Revenues in DetailRevenues in the reported quarter improved 7.2% year over year to $585.9 million. The metric missed the Zacks Consensus Est ...

Call Start: 10:00 January 1, 0000 10:42 AM ET Chemed Corporation (NYSE:CHE) Q4 2023 Earnings Conference Call February 28, 2024, 10:00 am ET Company Participants Holley Schmidt - Assistant Controller Kevin McNamara - President & CEO Mike Witzeman - CFO Nick Westfall - CEO, VITAS Healthcare Corporation Conference Call Participants Joanna Gajuk - Bank of America Michael Murray - RBC Capital Markets Holley Schmidt [Call Starts Abruptly] Financial Results for the Fourth Quarter of 2023 ended December 31, 2023. B ...

Revenue Dependence and Financial Performance - VITAS generates over 90% of its revenue from the Medicare program, indicating significant reliance on government funding[40] - Over 95% of VITAS' revenue comes from Medicare and Medicaid payments, primarily on a "per diem" basis, making the company vulnerable to cost management challenges[86] - VITAS derives over 95% of its net patient service revenue from Medicare and Medicaid, making its profitability highly dependent on managing service costs[154] - VITAS' net patient service revenue and profits are highly dependent on payments from Medicare and Medicaid, with potential material impacts from changes in payment rates or methods[184] - VITAS' profitability could be negatively impacted by potential reductions in Medicare and Medicaid payments, particularly for hospice services[155] Regulatory Compliance and Legal Risks - VITAS has satisfied the requirements of a Corporate Integrity Agreement with the Office of the Inspector General, concluding on June 22, 2023[54] - The Medicare Conditions of Participation require hospices to meet specific standards to receive payments, with ongoing compliance being critical[74] - VITAS must maintain clinical records for each patient, ensuring compliance with regulatory requirements[52] - The company is subject to heightened scrutiny from state and federal regulators regarding acquisitions of non-profit hospice programs, which may increase costs or hinder future acquisitions[85] - VITAS maintains compliance with applicable licensure and certification requirements, but non-compliance could adversely affect operations and participation in Medicare and Medicaid programs[111] - The company faces potential penalties under the Anti-Kickback Law, which could include fines and exclusion from Medicare and Medicaid programs[96] - Legislative and regulatory changes could require VITAS to invest substantially in new information systems, negatively impacting profitability and cash flows[213] Market Competition and Industry Landscape - The hospice care industry is highly fragmented, with VITAS being one of the largest providers, competing against numerous small, community-based hospices[42] - The company faces competition from national and regional hospice providers, as well as other healthcare entities diversifying into hospice care[70] - VITAS faces intense competition in the hospice care market, competing with national and regional companies, physician groups, and home health agencies[218] Operational Challenges and Workforce Issues - The current nationwide shortage of qualified nurses and aides is impacting VITAS' ability to provide quality hospice services, leading to increased wages and benefits to attract and retain staff[216][217] - VITAS' operations are significantly exposed to hurricanes due to its headquarters in South Florida, which could adversely affect billing and service delivery during major weather events[225] - The company has established a reserve for environmental liabilities related to historical contamination, but actual cleanup costs may exceed current estimates, potentially impacting financial condition[228] Financial Management and Strategic Decisions - The company has engaged in twelve significant acquisitions or divestitures since its inception, focusing on maximizing shareholder value[35] - VITAS' ability to repay or refinance its indebtedness depends on operating performance, which may be affected by various external factors[208] - The company has not experienced any known data breaches that compromised customer data, but it maintains safeguards against cyber-attacks[182] - VITAS has historically incurred debt to finance operations, and insufficient cash flows may force the company to reduce capital expenditures or restructure debt[230][231] Employee Engagement and Corporate Culture - The "Difference Maker Program" provided over $31.6 million in bonuses to employees during the pandemic, with $8.9 million remaining accrued for bonuses earned through June 2024[146] - The company emphasizes the importance of a diverse and inclusive workforce to foster innovation and better serve its diverse customer base[173] - Roto-Rooter has implemented extensive training programs for employees, focusing on safety, human resources, and regulatory compliance[171] Risk Management and Future Outlook - VITAS maintains a reputation management risk program to mitigate adverse publicity and maintain referral sources' willingness to refer patients[201] - VITAS' future success is contingent on the continued service of senior management personnel, with potential negative impacts from the loss of key management[191] - Future public health concerns, similar to the COVID-19 pandemic, may negatively impact VITAS' ability to operate and serve patients, affecting demand for services[232]

Chemed (CHE) reported $585.91 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 7.2%. EPS of $6.60 for the same period compares to $5.39 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $587.45 million, representing a surprise of -0.26%. The company delivered an EPS surprise of +5.60%, with the consensus EPS estimate being $6.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...